Chinese Import Competition, Offshoring and Servitization

Grace Gu (), Samreen Malik (), Dario Pozzoli and Vera Rocha
Additional contact information
Grace Gu: University of California Santa Cruz
Samreen Malik: New York University AD, https://nyuad.nyu.edu/en/academics/divisions/social-science/faculty/samreen-malik.html

No 5-2021, Working Papers from Copenhagen Business School, Department of Economics

Abstract: This paper examines whether Chinese import competition increases the propensity for firms to offshore production or to cease any involvement in production by switching completely and permanently out of the manufacturing sector (servitization). Using a Danish employer-employee matched dataset covering a large sample of manufacturing firms over the 1995-2012 period, we find that import competition from China significantly increases offshoring but does not induce servitization. These findings are confirmed using various robustness tests as well as an analogous analysis of a Portuguese employer-employee matched dataset.

Keywords: Foreign competition; Offshoring; Servitization (search for similar items in EconPapers)
JEL-codes: F12 F14 O31 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2021-01-08
New Economics Papers: this item is included in nep-cna, nep-com, nep-int and nep-lab
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